Instacart marks IPO target at $616 million with a projected $9.3 billion valuation
Following an initial announcement of Instacart's IPO filing in August 2023, the grocery delivery service has revealed that it is looking to raise well over half a billion in its initial public offering, according to a regulatory filing. Instacart's IPO will see the company offering up
Following an initial announcement of Instacart's IPO filing in August 2023, the grocery delivery service has revealed that it is looking to raise well over half a billion in its initial public offering, according to a regulatory filing.
Instacart's IPO will see the company offering up to 22 million shares to investors, with each share carrying a price tag ranging from $26 to $28. Instacart will issue 14.1 million shares, while the remaining 7.9 million will be offered by existing shareholders.
If all goes as planned and shares are sold at the upper end of the price range, the IPO could rake in an impressive $616 million, making it one of the most talked-about offerings of the year.
Emmanuel Oyedeji
In a show of early interest, a consortium of investors, including Norway's central bank affiliate, TCV, Sequoia Capital, D1 Capital Partners, and Valiant Capital Management, has already expressed interest in purchasing $400 million worth of Instacart shares. Severally, PepsiCo Inc. committed $150 million in private investment into Instacart shares.
The offering is expected to value Instacart between $8.6 billion and $9.3 billion, marking a significant milestone for the company.
Instacart's IPO comes amid a resurgence in the IPO market, with several high-profile companies, including Arm Holdings and Klaviyo, testing investor appetite for new listings. The company's decision to go public is further evidence of the growing interest in the online grocery sector, driven by changing consumer habits and increased demand for delivery and convenience services.
